Brand Extension &Nbsp; Beware Of "Death Zone"

　　 brand Extension must be rational and prudent. How to extend the brand is rational and rational? We must understand the brand extension of the death line. The essence of competition among enterprises is to master and integrate core resources. After creating the brand at the best point, it extends to both sides. We must understand where the death line of brand extension is, which is determined by three factors: first, the inclusiveness of the customer's mind; the two is the industry requirement; and the three is the enterprise resources.

Customer thought refers to the idea of customer's brand identity, and the inclusion of customer's thinking is the biggest "circle" of brand extension niche. The brand concept of new product is often compatible with the customer's idea of brand identity. For example, the brand extends to sports shoes. Gym shoes The brand concept that can express "passion" and "vitality" is that the brand concept of the new product is contained in the customer's mind. If the hotel extends to the hotel, the hotel service can hardly express the brand concept. This goes beyond the customer's idea and goes beyond the death line of the brand extension. This brand extension is a failure.

　　 industry Requirements refer to customer demand, average interest rate and degree of competition in the industry. Only the existence of customer demand has the value of extension. As long as there is profit, there is a possibility that the extent of competition will extend and the extent of competition will extend. In the industry, there is no need and no profit for customers, which indicates that the extension is beyond the limit of death.

Enterprise resources, especially core resources, is the key to the success of brand extension. Customer ideological inclusiveness and industry requirements are non controllable factors, and enterprise resources are controllable factors. Enterprises must first determine the core resources needed to enter the new product market, whether enterprises have such core resources, how to master and integrate core resources, and extend services for brands. If the enterprise does not have the resources of brand extension new products, brand extension is beyond the limit of death.

To sum up, enterprises must be able to extend their brand within the scope of customer's thought tolerance, low level of industry requirements and resources for developing new products.